Kone, a leading name in the elevator and escalator industry, plans to set up a new production facility near Chennai.

The capacity of the new facility would be twice that of the existing production unit, which is also near Chennai. The plan is to consolidate factory operations at the new facility, which “should happen in 2015,” Kone Elevator India Private Ltd Managing Director Neeraj Sharma said on Friday.

Kone’s share is “in excess of 20 per cent” in the elevator market, which is estimated to be 35,000-40,000 units a year.

For the new plant, the company has bought 18.5 acres around Sriperumbudur from SIPCOT, he said in response to queries from presspersons, at the launch of a new range of Kone elevators.

Noting that Kone was coming with a new range after over 15 years, Mr. Sharma the new elevators, both for commercial and residential application, were built on a platform of eco-efficiency, design, especially the visual aspects, and ride comfort. “With this the best has been made better,” he added.

Kone’s Executive Vice-President (Asia Pacific and the Middle East) Noud Veeger said the mega trends that contributed towards the growth of the elevator industry were urbanisation, ageing population, growing emphasis on safety and environment. Urbanisation, in particular, was expected to be “fantastic driver” for the industry, he said, pointing that the range would be introduced across the world at the same time. A release said the new products would be available in Asia Pacific during the second-half of 2012.

On the challenges for the industry, he said they included high interest rates on home loans and scams in housing projects leading to refusal of permission for high rise buildings in some parts of the country.